UK Supreme Court Decides for UniCredit in Sanctions Case

The United Kingdom’s Supreme Court decision in UniCredit Bank GmbH v. Celestial Aviation Services Ltd.[[1]] was issued 25 March 2026 regarding whether the London branch of a German bank as confirming bank was prohibited by UK sanctions imposed on Russia from making payments under multiple standby letters of credit prior to obtaining licenses to do so.

The standbys had been issued a Russian bank to back the obligations of various leases of civilian aircraft to two Russian airlines (applicants). Payments under the standbys were to be made by the confirming bank to three Irish aircraft leasing companies (beneficiaries).